“International marketing is multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange that satisfy individual and organisational objectives.”
Availability of the advanced communication and transportation facilities has reduced the physical distance among the nations of the world, and has made the world as a global village. Countries of the world are nearing to participate in the global market opportunities. Customers’ needs and wants are not limited to the products produced and marketed within the boundary of country. Today’s buyers can access goods or services produced and marketed by the foreign companies. For example, Sony TV, Gucci purses, Coca-Cola, Rayban Glasses, Toyota and Ford vehicles, Arrow shirts, Levy’s Jeans, Oxford’s books, McDonald’s Fast Food, and many other products of foreign companies are easily available anywhere.
Similarly, producers’ products are not meant for domestic market only. Development of computer network (Internet), e-commerce, e-business, network marketing, rapid means of transportation and other similar advancements have made it possible to access or avail products of any company throughout the world.
All components of business have acquired the global status, i.e., global market, global demand, and global supply. Cultural diversities tend to reduce considerably. Customers have become cosmopolitan. Nowadays, to export or import is not as difficult as it was. Instead of restricting, most of nations encourage international trade/marketing. (International, multinational, transnational arid global marketing are used interchangeably).
Export Management and International Marketing:
Export management and international marketing are closely related but are different. Export management only involves managing international trade from the host (exporting) country to the guest (importing) country. It is limited to managing of flow of goods or services. While international marketing is comprehensive and integrated term that also covers exporting products. In brief, it can be said that export management is a part of international marketing management. Export management more closely related to selling products in the international market.
It is similar to international trade. International marketing deals with identifying needs and wants of international (customers) market, producing products to satisfy those needs and wants, and adopting the most appropriate way to price, promote and distribute for the product to satisfy those needs and wants.
Modern marketing doesn’t involve only selling or distributing, but also include production, finance, and personnel activities. Further, post-sales activities are also equally crucial. However, management practitioners and experts use both terms loosely and treat, more or less, as the similar. The conceptual controversy has a little relevance to the real practice.
Definitions:
(Most of the writers have defined international marketing similar as export management. Virtually, both are different).
Let’s examine some definitions:
1. The American Marketing Association defines the term: “International marketing is multinational process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange that satisfy individual and organisational objectives.”
(Only the word ‘international’ has been added to the definition adopted by the AMA. The word implies that marketing activities are undertaken in several countries and such activities should somehow be coordinated across nations)
2. We can define the term as: International marketing means to produce products (goods and services) for the foreign customers and to make necessary arrangement to supply them.
3. International marketing concerns with marketing products in foreign counties. In this reference, we can define it as: Marketing activities across the border can be said as international marketing. Marketing activities among the countries of the world can be turned as international marketing.
4. Finally, it can be said: International marketing is the marketing for the customers of other countries. It involves designing marketing programme (4P’s) to arrive at desired exchange with foreign customers that satisfies their needs and wants.
We can identify following simple features of international marketing:
1. Marketing activities are undertaken across the borders.
2. It is directed to facilitate exchange between the firm and the customers of foreign countries.
3. It is aimed at satisfying needs of international/global customers.
4. International marketing decisions are taken with reference to the global business environment.
5. It involves two or more nations.
6. Tailor-made marketing mix is necessary for each of the nations.
7. It is more complex and, hence, difficult.
8. Role of international trade agencies seem very critical in marketing products in other countries.
9. It offers attractive opportunities along with challenges and threats.
10. All other characteristics of modern marketing are also applicable to international marketing, etc.
Need and Importance:
In relation to the need or importance of international marketing, views of Philip Kotler are worth noted. According to him, two forces essentiality the international marketing are pull forces and push forces. Push forces lead to force the nation to sell its goods and services in other nations.
The push forces include lower national income, low per capita income, low domestic demand, unfavourable approach of government, high rates of tax and duties, government force to export to earn foreign exchange, tough local market, etc. These forces force the marketer to opt for international market.
Another set of forces is pull forces. The pull forces pull (attract) businessmen to sell their products in the foreign market to exploits attractive opportunities in the foreign countries. To take benefits of more profitable opportunities, they are pulled to business in other nations. The variable lead to international market may fall either in pull forces or push forces or both.
Let’s have brief explanation of several benefits available due to international marketing:
1. It ensures survival for a company and a country.
2. Nations can get benefits of division of work and specialization.
3. It also helps in balancing unequal distribution of natural resources.
4. Extending product life cycle by selling products in other nations.
5. It is important for controlling inflation and achieving price moderation.
6. Balancing demand and supply.
7. Promotion of invention and innovation globally.
8. Companies can take benefits of taxes and duties.
9. Technological Transmission among countries of the world is easily possible.
10. International marketing can improve standard of living of people.
11. Growth of international marketing results into social and cultural development.
12. Worldwide peace is possible due to interdependency among countries of the world
13. Global employment opportunities can help ease unemployment problems.
14. Growth of overseas market leads to global prosperity.
Forces/Variable Leading to the Need of International Marketing:
The world has become the global market. The opportunities emerging in any nation are not enjoyed by the nation only. Other nations of the world can take benefits of them. Due to global thinking, liberal dealings with others, positive attitudes toward privatization, available of necessary guidelines, facilities, and encouragement have ultimately resulted in growth of international marketing.
Main forces led to need of international marketing are:
1. Unequal distribution of natural resources
2. Specialization and need for marketing surplus
3. Craze for global political empowerment
4. Rapid means of communication and transportation
5. Liberalization
6. Globalization or global thinking
7. Trend for privatization
8. Improved understanding and cooperation among nations for mutual benefits
9. Satisfactory functioning of several international organisations or agencies such as International Monetary Fund (IMF), World Bank, United Nations Organisation (UNO), UN Security Council, etc.
10. Growth and Development of Multinational Companies (MNCs)
11. Emergence of global marketing opportunities
12. Technological advancement and transfer of technology.